IT software procurement plays an essential part for any business or organization who depends on computing, software systems, and equipment to maintain daily business activities. In today’s world of digitalization, almost every business’s operation is based on the adoption of various IT equipment and software solutions. Therefore, providing a company with high-quality computer systems, effective telecommunications equipment, hardware, and software has become the foundation of a successful business.
SpendEdge’s IT software market procurement intelligence report offers actionable insights on the global spend potential, pricing strategies, and market trends influencing the category spend. Insights delivered in this procurement intelligence report will help buyers identify cost-saving opportunities while procuring IT software. Have a look at SpendEdge’s Global IT Software Category – Procurement Market Intelligence Report, and download your free sample report now!
IT Software Procurement Market Overview
The latest IT software market procurement intelligence report from SpendEdge, highlights that the worldwide spending on IT software procurement is expected to reach USD 2.81 billion in 2019. This figure is forecast to grow with a strong CAGR of 4.67% by 2023, driven by the growing IT software demand in the banking and financial service industry. Meanwhile, the rapid digitization of medical records and the increased integration of smart devices with patient monitoring systems will drive the growth of the category spend in the healthcare sector at a CAGR of nearly 6% during the forecast period.
When it comes to software type, the increase in the demand for business analytics software is expected to be one of the major contributors to the growth of this market. The growing adoption and execution of data-driven strategy planning by the manufacturing, automobile, BFSI, and healthcare industries is also expected to drive the demand for business analytics software over the next few years.
Top IT Software Procurement Trends to Watch in 2019
The Demand for IT Services such as Consulting and System Integration is Soaring
The global IT software market includes several major segments such as IT services, ERP software, business intelligence software, CRM software, and database management services. The IT services segment currently has the largest market share, accounting nearly 34% of the global market spend. This segment’s majority share is owed to the rise in the need for IT services such as consulting and system integration across major end-user sectors such as BFSI and manufacturing. The demand for business analytics software is also expected to witness an accelerated growth over the next five years. This is mainly due to the fast-growing demand of data-driven strategy planning and execution across industries such as manufacturing, automobile, BFSI, and healthcare.
Cloud-based Software will Accelerate Spend Momentum for the Category
Cloud-based software is nowadays widely adopted in numerous industries due to its huge benefits For example, in the healthcare industry, the cloud-based software is vital for supporting medical records and the growing integration of smart devices with patient monitoring; In BFSI and retail sectors, cloud-based CRM software helps to identify and manage customer profiles. Meanwhile, cloud-based infrastructure as a service (IaaS) is also able to offer low-cost IT infrastructure and fast data accessibility for industries like retail, manufacturing, and BFSI. Therefore, the spend momentum of the IT software category is expected to accelerate significantly over the near future, mainly driven by the rising spend of the healthcare sector on IT software, growing demand for CRM software, larger adoption of cloud-based software, and rising demand for IaaS.
Asia-Pacific Will be the Fastest Growing Region for IT Software Spending
The IT software market in Asia-Pacific is expected to experience the fastest growth rate during the forecast period. This is mainly due to the exorbitant growth of the market in countries such as India, China, Singapore, Vietnam, and South Korea. For instance, the software market in India, which accounted for nearly 13% of the entire Asia market in 2018, is expected to grow at a CAGR of nearly 14% during by 2023. This growth is mainly driven by the rise in adoption of SaaS (Software as a service) across end-user industries, including telecom, professional services, and retail.
IT Software Suppliers Will Increasingly Adopt Low-coded Application Development Process
IT software suppliers are increasingly focusing on the adoption of the low-code application development process. This process improves speed-to-value through the support of graphical, model-driven development methodologies that enable teams to collaborate and rapidly build and deploy cloud-native applications. This platform reduces complexities in application development as it requires hand coding and is coded like a flow chart instead of line-by-line coding.
Customized Cybersecurity Solutions will be more Popular
IT software buyers are increasingly preferring advanced DDoS attack mitigation and customized web security solutions for different online security needs. IT software solutions and services require comprehensive adjustments and tuning in order to fit different requirements from different businesses, especially for the cybersecurity solutions. These customizations should take consideration of business’s project requirements, security levels, operational styles, and company’s rules. Therefore, during the IT software procurement process, buyers are expected to increasingly focus on having customized cybersecurity solutions to better protect their daily IT software usage.